Doing Business in Vietnam in 2024: 8 Positive Signs for Positive Economy

Vietnam’s economy has been showing remarkable resilience and growth, making it an increasingly attractive destination for foreign investors doing business in Vietnam in 2024. Whether you’re considering setting up a company in Vietnam or establishing a representative office in Vietnam, there are many promising developments to encourage you to make that move.

In following, we’ll explore 8 positive economic signs in Vietnam that highlight the country’s potential for doing business in Vietnam in 2024.

Strong Agricultural Growth

Vietnam’s agriculture sector continues to be a pillar of the economy, showing robust growth in 2024. The Mekong Delta, a key agricultural region, has seen significant increases in rice production. As of August 20, 2024, the autumn-winter rice cultivation area in this region reached 489,100 hectares, up by 7.4% compared to the same period last year. This growth is driven by stable rice prices, which have accelerated planting progress.

The livestock sector is also thriving, with pig and poultry farming continuing to expand. By the end of August, the pig population had increased by 2.2%, while the poultry population grew by 3.4%. This consistent growth in the agricultural sector reflects a stable foundation that contributes to Vietnam’s overall economic health, making it a great time to consider setting up a company in Vietnam that is related to food processing or agricultural trade.

Booming Forestry and Fisheries Sectors

Another area of growth is the forestry sector, which has benefitted from favorable weather conditions. In August 2024 alone, the country produced an estimated 2.08 million cubic meters of harvested wood, a 7.6% increase compared to the same period in 2023. This brings the total wood output for the first eight months of 2024 to over 14 million cubic meters, up by 7.2%.

Vietnam’s fisheries sector is also on the rise, with significant increases in both aquaculture and seafood exports. Major products such as pangasius and shrimp have seen rising demand in key export markets, particularly ahead of the holiday season in many countries. The total aquaculture output for August 2024 reached 522,400 tons, a 3.8% increase over the previous year, making Vietnam an ideal location for investments in the seafood industry.

Steady Industrial Production Growth

Industrial production in Vietnam has maintained a strong upward trajectory in 2024. The industrial production index for August 2024 increased by 9.5% compared to the same period in 2023. For the first eight months of the year, the index rose by 8.6%, which is a significant improvement from the previous year when it decreased slightly. Manufacturing and processing, the backbone of Vietnam’s industrial sector, grew by 9.7%, while electricity production and distribution saw an 11.6% rise.

This consistent industrial growth suggests that Vietnam remains a key player in global supply chains, particularly for electronics, textiles, and consumer goods. Foreign investors doing business in Vietnam in 2024 in the manufacturing or industrial sectors will find this to be an opportune time.

Expanding Retail and Consumer Markets

Vietnam’s domestic consumption continues to grow, driven by a rising middle class and increased consumer spending. In August 2024, total retail sales of goods and services increased by 7.9% compared to the same period last year. Over the first eight months of 2024, retail sales rose by 8.5%, reflecting strong consumer confidence and robust economic activity.

Foreign companies looking to tap into Vietnam’s growing consumer market will find that setting up a representative office or company in Vietnam provides access to a dynamic and expanding retail sector.

Rapid Growth in Tourism

Vietnam’s tourism sector has made an impressive recovery after the global pandemic, and 2024 is set to be a record-breaking year for international visitors. In August 2024, the country welcomed an estimated 1.43 million international tourists, marking a 17.7% increase compared to the same period in 2023. Overall, for the first eight months of 2024, more than 11.4 million foreign tourists visited Vietnam, representing a 45.8% increase year-on-year.

With ambitious targets to attract 18 million international visitors by the end of 2024, Vietnam’s tourism sector is on track for significant growth. Foreign investors in hospitality, travel services, and retail catering to tourists will find abundant opportunities doing business in Vietnam in 2024 to capture this growing market.

Impressive Trade Performance

Vietnam’s international trade has also been a bright spot in 2024. The total export and import value for the first eight months of the year reached $511.11 billion, a 16.7% increase from the same period in 2023. Exports rose by 15.8%, while imports grew by 17.7%. The trade surplus for the first eight months of 2024 was estimated at $19.07 billion, which has helped to improve Vietnam’s balance of payments and financial stability.

This strong trade performance, particularly in high-demand export goods like electronics, textiles, and seafood, underscores Vietnam’s role as a key manufacturing and export hub in the region. For companies looking for opportunities doing business in Vietnam in 2024 to set up a company in Vietnam to engage in import-export activities, this is a highly favorable time.

Growing Foreign Direct Investment (FDI)

Foreign investment continues to flow into Vietnam, a clear indicator of the country’s economic potential and business-friendly environment. As of August 31, 2024, Vietnam had approved 2,247 new foreign investment projects, totaling nearly $12 billion in registered capital. This represents an 8.5% increase in the number of projects and a remarkable 27% increase in registered capital compared to the same period in 2023.

Vietnam’s FDI growth is a testament to the confidence that international businesses have in the country’s economic future. Investors considering entering the Vietnamese market can leverage the favorable conditions by setting up a company in Vietnam or establishing a representative office in Vietnam for doing business in Vietnam in 2024 to tap into sectors like manufacturing, technology, and services.

Positive Business Environment and Policy Support for Doing Business in Vietnam in 2024

Finally, Vietnam’s government has been proactive in improving the business environment and supporting economic growth. The number of new businesses entering the market in 2024 has consistently outpaced those exiting, reflecting a positive shift in the business landscape. In the first eight months of 2024, 168,100 new businesses were established, exceeding the number of closures (135,300).

Furthermore, tax revenues in the first eight months of 2024 increased by 17.8% compared to the same period in 2023, driven by the vibrant business environment. The government’s continued focus on creating favorable conditions for foreign and local enterprises ensures that Vietnam remains an attractive destination for investment.

Conclusion: Why Now Is the Best Time for Doing Business in Vietnam in 2024

Vietnam’s economy in 2024 is showing robust signs of growth across multiple sectors, from agriculture and industry to trade and tourism. The country’s impressive recovery, favorable investment climate, and expanding consumer markets make it an ideal destination for foreign investors.

If you’re considering doing business in Vietnam in 2024, now is the perfect time to seize the opportunity. With the government’s ongoing efforts to improve the business environment and a rapidly growing economy, investing in Vietnam will position your company for long-term success in the region.

The future is bright for Vietnam, and smart investors should act now to become part of its growth story.

About ANT Consulting and Market Entry Services in Vietnam

ANT Consulting is here to assist you from the outset; providing intelligence, information, advisory, management or support services that assist market entrance, and ensure efficient business start-up operation.

Research Service
Company Profiling and Due Diligence
Policy and Regulatory Research
Assistance in Setting-up Business Venture
M&A Origination & Execution

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